In this presentation, Stacy Chin explains why the SBIR and STTR grant programs stopped issuing new awards after October 1, 2025, due to the programs' authority expiring on September 30, 2025. She outlines the current congressional reauthorization process: the Senate has passed a reauthorization bill, the House has not yet voted (next expected vote March 16, 2026), and the President must sign before agencies can issue new solicitations. Chin details five likely reforms under the pending legislation: (1) extending the program through September 2031 with the ability to roll over unused funds, (2) stricter vetting of foreign connections (investors, partners, licensing deals), (3) increasing certain Phase 2 awards from roughly $1.5 M to as much as $30 M for critical technologies, (4) limiting the number of proposals a single company may submit each year, and (5) giving companies more flexibility with TABLA funding to select advisors for legal, commercialization, or cybersecurity support. She concludes with three actionable recommendations for founders while the reauthorization is pending: map a grant strategy aligned with agency missions, build early relationships with program managers, and tighten commercialization plans to demonstrate market impact.
Chapters
I know a lot of you have been struggling lately trying to figure out what's going on with the SBIR program. Because since October 1st, 2025, there has been pretty much no new opportunities coming out of the federal agencies. And if you're a founder relying on non-dilutive funding, that's a pretty big deal. I'm going to break down what has happened since October 1st, what's going on in Congress right now, and the 5 changes that may be coming to the SBIR program. Now, in case you've been hiding under a rock, let me bring you up to speed. The SBIR and STTR programs expire September 30th, 2025, because Congress just didn't pass the reauthorization bill in time. When that happens, agencies lose the authority to issue new SBIR awards, which is why the pipeline just suddenly went quiet. Congress has been debating how the program should evolve. Everyone agrees the program should continue, but there's been disagreements about what reforms should be included and how the program should change. The bill has just been ping-ponging back and forth in Congress while lawmakers are trying to work towards a compromise. Meanwhile, startups, universities, and industry groups have been putting a lot of pressure on Congress to get this resolved because the SBIR is not just another grant program, it's basically America's seed fund for deep tech innovation. Here's the latest update: just recently, the Senate voted to reauthorize the SBIR and STTR programs, which is a huge step forward, but the bill still needs to pass the House. And the House actually adjourned recently without voting, and it's currently on district work periods in their home state. So the next opportunity for a vote is expected when they return on March 16th. Once the House passes the bill, the president still needs to sign it, and then federal agencies have to update their solicitations and publish them. But because of this delay, we're already seeing some unexpected deadlines left. For example, NIH recently announced there'll be no April 5th SBIR and STTR omnibus deadline, which is pretty unusual. So the timing of these solicitations is now directly tied to when Congress finalizes the reauthorization. If the current proposal moves forward, there are 5 major changes founders should watch out for. First, the program would be extended through September 2031, giving agencies way more stability and allowing them them to roll over leftover funds. Second, there will be stronger vetting of foreign connections, including investors, partnerships, technology licensing agreements. Third, and this is the big one, there is a proposal to raise certain Phase 2 awards from about $1.5 million all the way up to $30 million for critical technology. Fourth, agencies may start limiting how many proposals each single company can submit per year. Fifth, companies may get more flexibility with TABLA funding, allowing them to choose their own advisors for legal, commercialization, or cybersecurity support. Now, these changes are expected, but they haven't officially taken effect just yet. So here's the big question: what should founders be doing right now while Congress finishes this process? There are 3 things. First, map out your grant strategy now. Which agencies and topics actually align with your technology and go-to-market? Second, start building relationships with program managers early because those conversations can give you insights into what agencies will prioritize next. Third, tighten up your commercialization strategy because moving forward, agencies will care about real market impact, not just good science.
